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Entrepreneurship

Chapter 4 Exploring Your Market

Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Markets & Marketing Market = those people or organizations

that may be interested in buying a product or service, have the resources to buy it, and are permitted by law or regulation to do so

Marketing = satisfying the customer at a profit The business function that identifies your

customers and their wants and needs The engine that drives ALL business decisions




Marketing Research Primary = research conducted

directly on a subject or subjects Secondary = research carried out

indirectly through other existing resources




Primary Research Methods Personal interviews Telephone surveys Written surveys Focus groups Observation Tracking Review of books & records




Secondary Research Methods Online searches Article & book searches Competitor websites




Visualize Your Customer

Use market research to find out: Who your potential customers are Where you can reach them What they want and need How they behave What the size of your potential

market is




Customer Research Surveys Focus groups Research reports




Industry Research Interviews Observation Tracking Written sources of statistical data Books & articles Competitor websites Trade associations & chambers of

commerce




Customer Decision-Making Awareness Information search Evaluation of alternatives Decision to purchase Evaluation of purchase




Owning Customer Perception Features create benefits.

Feature = a fact about a product or service

Benefit = what the feature can do to meet a customer’s needs

Needs, wants, and demands are different.




Market SegmentationMarket segment = customers who have similar response to a certain type of marketingSegmentation methods

Geographic Demographic Psychographic Behavioral




Product Life Cycle (PLC) Stages

1. Introduction2. Growth3. Maturity4. Decline

Where is your product/service in the PLC? Is your market saturated?




Market Positioning Distinguish your product/service from

others offered to your market segment. Goal is to clearly communicate how

your product/service differs from competitors.

Sample positioning statement: (General Motors) is the (leading US automobile maker) that (provides affordable cars) to (American families).

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